Small Business

States With Small Businesses Most Affected by Government Shutdowns in 2019

States With Small Businesses Most Affected by Government Shutdowns in 2019

The government shutdown means the SBA's activities are on hold for the time being. We analyzed how small businesses in different states would be impacted.
Struggling business owner affected by the government shutdown
Struggling business owner affected by the government shutdown Source: Getty Images

The Small Business Administration (SBA) is probably best known for its 7(a) small-business loans. Since 2010 the nation has seen over $177 billion in SBA 7(a) loans issued, more than 472,000 7(a) loans approved, and 5 million jobs supported by those issued loans. SBA loans are competitively priced, which makes them one of the most popular financing options for small businesses in the U.S. However, the current government shutdown means SBA 7(a) loan applications aren't being processed. We analyzed SBA data to see how small businesses across each state would be affected.

States Most Affected by Shutdown

To determine which states would be most affected by the current shutdown, our analysts dug through SBA statistics dating back to 2010 to rank states where SBA loans have had the biggest impact. We measured impact based on the number of loans issued, the cumulative sum of the loans issued and the total number of jobs supported by 7(a) loans.

  • California

    • Approved SBA 7(a) loans rank: 1
    • Number of SBA 7(a) loans issued rank: 1
    • Jobs supported by SBA 7(a) loans rank: 1
  • Texas

    • Approved SBA 7(a) loans rank: 2
    • Number of SBA 7(a) loans issued rank: 2
    • Jobs supported by SBA 7(a) loans rank: 2
  • New York

    • Approved SBA 7(a) loans rank: 5
    • Number of SBA 7(a) loans issued rank: 3
    • Jobs supported by SBA 7(a) loans rank: 3
  • Florida

    • Approved SBA 7(a) loans rank: 3
    • Number of SBA 7(a) loans issued rank: 5
    • Jobs supported by SBA 7(a) loans rank: 4
  • Ohio

    • Approved SBA 7(a) loans rank: 7
    • Number of SBA 7(a) loans issued rank: 4
    • Jobs supported by SBA 7(a) loans rank: 5
  • Illinois

    • Approved SBA 7(a) loans rank: 6
    • Number of SBA 7(a) loans issued rank: 8
    • Jobs supported by SBA 7(a) loans rank: 7
  • Michigan

    • Approved SBA 7(a) loans rank: 9
    • Number of SBA 7(a) loans issued rank: 6
    • Jobs supported by SBA 7(a) loans rank: 6
  • Georgia

    • Approved SBA 7(a) loans rank: 4
    • Number of SBA 7(a) loans issued rank: 12
    • Jobs supported by SBA 7(a) loans rank: 9
  • Pennsylvania

    • Approved SBA 7(a) loans rank: 11
    • Number of SBA 7(a) loans issued rank: 9
    • Jobs supported by SBA 7(a) loans rank: 10
  • Minnesota

    • Approved SBA 7(a) loans rank: 16
    • Number of SBA 7(a) loans issued rank: 10
    • Jobs supported by SBA 7(a) loans rank: 8

States Least Affected by Shutdown

We also found the states in which businesses would be the least affected. States where SBA loans weren't as prevalent would rank higher on this list.

  • Wyoming

    • Approved SBA 7(a) loans rank: 49
    • Number of SBA 7(a) loans issued rank: 50
    • Jobs supported by SBA 7(a) loans rank: 50
  • South Dakota

    • Approved SBA 7(a) loans rank: 46
    • Number of SBA 7(a) loans issued rank: 48
    • Jobs supported by SBA 7(a) loans rank: 49
  • West Virginia

    • Approved SBA 7(a) loans rank: 47
    • Number of SBA 7(a) loans issued rank: 46
    • Jobs supported by SBA 7(a) loans rank: 47
  • Delaware

    • Approved SBA 7(a) loans rank: 44
    • Number of SBA 7(a) loans issued rank: 47
    • Jobs supported by SBA 7(a) loans rank: 48
  • Arkansas

    • Approved SBA 7(a) loans rank: 43
    • Number of SBA 7(a) loans issued rank: 49
    • Jobs supported by SBA 7(a) loans rank: 46
  • Vermont

    • Approved SBA 7(a) loans rank: 48
    • Number of SBA 7(a) loans issued rank: 44
    • Jobs supported by SBA 7(a) loans rank: 44
  • North Dakota

    • Approved SBA 7(a) loans rank: 45
    • Number of SBA 7(a) loans issued rank: 45
    • Jobs supported by SBA 7(a) loans rank: 45
  • Hawaii

    • Approved SBA 7(a) loans rank: 50
    • Number of SBA 7(a) loans issued rank: 40
    • Jobs supported by SBA 7(a) loans rank: 43
  • Montana

    • Approved SBA 7(a) loans rank: 39
    • Number of SBA 7(a) loans issued rank: 41
    • Jobs supported by SBA 7(a) loans rank: 42
  • Maine

    • Approved SBA 7(a) loans rank: 42
    • Number of SBA 7(a) loans issued rank: 39
    • Jobs supported by SBA 7(a) loans rank: 40

See Where Your State Ranks

In our analysis, we examined the sum of the 7(a) loan amounts, the number of SBA 7(a) loans issued and the number of jobs supported by each loan, by state, since 2010. Larger states like California, Texas and New York all have significant SBA 7(a) activity and are the most likely to be negatively impacted by the shutdown, since 7(a) applications aren't being processed. Wyoming, South Dakota and West Virginia have seen the least amount of SBA activity and the least likely to be affected by the government shutdown.

State
Aggregate Rank
Sum of Approved Loans
Number of Loans Issued
Jobs Supported
AK46434946
AL34283534
AR38344241
AZ16151813
CA1111
CO15121515
CT24272425
DE47444748
FL4354
GA84129
HI43504043
IA27333127
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Methodology

Our findings are the result of data provided by the SBA dating back to 2010. We chose to limit our findings to 7(a) loans, as these are the most popular financing tools the SBA provides.